The real estate market, much like most major industries, can be fickle due to vast opinions, actions, prices and philosophies across an entire country.
Just this week, Realtor.com had two MarketWatch articles one day apart that posed opposing opinions. One article argues that home builders are losing confidence as COVID-19 cases continue to go up and the price of materials starts to increase. The next day they posted a different article stating that new home construction is rapidly increasing to unexpectedly high numbers since builders want to respond to the demand for single-family homes.
The United States is a very big country with very varying real estate markets depending on the area or city. However, these smaller “markets” are essentially still part of the entire real estate market in the country. So, depending on something can be true in one area and not true in another but still be true in general as part of the country’s real estate market. Why is this important to know? Because California is California! It’s a very special place, it is one of the largest economies in the world, the real estate is priced relatively high, but it is also very highly sought after and wanted.
So even if confidence in building homes in a different state might be falling, because of how big the California real estate industry is, builders can be excited about the profitable opportunity to build in California when it may not be the case elsewhere.
This may sound like a commercial for the state of California, but in actuality we want you to help you be able to distinguish real estate news that refers to the entire country (which is always important) from real estate news that is mostly true in California. This distinction will help you remain more informed whether you want to buy, sell or invest.
If you would like some more in-depth information, guidance or even just someone to bounce your ideas off of, talk to Amin Vali. Amin Vali Real Estate Investment is experienced in these matters and has a real understanding of homes and properties from the ground up.